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Purpose

This study aims to investigate whether the relationship between organizational forgiveness climate and employees’ psychological well-being in service sector organizations is moderated by workplace spirituality.

Design/methodology/approach

Using survey data gathered from a randomly selected sample of 402 service sector employees, the study applies quantitative research techniques such as correlation, moderation and regression analyses to examine the hypotheses.

Findings

The study finds that the organizational forgiveness climate has a positive impact on employees’ psychological well-being and that workplace spirituality positively moderates this relationship. This indicates that, in the presence of workplace spirituality, the positive effect of the organizational forgiveness climate on employees’ psychological well-being becomes stronger.

Practical implications

The results highlight how crucial it is to cultivate a climate of forgiveness in service sector organizations to improve employees’ mental health and general well-being. Furthermore, the findings suggest that when service sector organizations encourage spiritual values among employees such as ethical conduct, building a sense of community, finding meaning in work and fostering a sense of purpose and contentment, it strengthens the forgiving properties, which in turn leads to enhanced psychological well-being.

Originality/value

Although organizational forgiveness climate has been recognized as an essential component in organizational settings, its direct impact on employees’ psychological well-being has received comparatively limited attention. This study adds to the literature by empirically investigating the implications of organizational forgiveness climate for employees’ psychological well-being. Furthermore, it examines how workplace spirituality may moderate the extent to which the organizational forgiveness climate affects employees’ psychological well-being in organizational settings.

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